Utility Deposit Bond - Mississippi Power Company in Mississippi

Brief Summary

A business on a Mississippi Power general service rate can be asked for a deposit equal to twice its estimated maximum monthly bill, payable before service is connected. For a high usage account that is real money sitting idle. A utility deposit bond guarantees the same bills for an annual premium, once Mississippi Power agrees to take the bond in place of the cash.

Mississippi Power Company may require a deposit to guarantee payment of electric bills under Rule 504 of its Rules Governing Electric Service, filed with the Mississippi Public Service Commission. The amount is set by the customer's rate schedule. General service schedules GS-LVT-15I and GS-HV-17I call for twice the estimated maximum monthly bill, and nonresidential deposits are payable before service is furnished. This bond names Mississippi Power Company as obligee and guarantees payment of the customer's electric bills. Confirm with Mississippi Power that it will accept the bond, the amount and its form before the bond is issued.

We can help with all Mississippi bonds!

How to Apply for a Utility Deposit Bond:

• Find your rate schedule and the deposit Mississippi Power is asking for on the account.
• Ask Mississippi Power to confirm in writing that it will accept a surety bond in place of the cash deposit, and get its bond form if it has one.
• Use the customer name exactly as it appears on the Mississippi Power account.
• Complete the surety application and review the quoted premium.
• Deliver the executed bond to Mississippi Power before service is connected.
• Increase the bond if Mississippi Power later raises the required deposit under Rule 504.

Detailed Information About the Mississippi Utility Deposit Bond:

The amount depends on your rate schedule

Rule 504 says a deposit of not less than the amount stipulated in the applicable rate schedule may be required to guarantee payment of all bills for electric service. The rate schedules set the formula:

• General service, low voltage three phase (GS-LVT-15I) and general service, high voltage (GS-HV-17I): a deposit equal to twice the estimated maximum monthly bill may be required before service is connected.
• Residential (R-61I): a deposit equal to the estimated average monthly bill may be required before service is connected. A customer whose credit standing has become impaired may be required to deposit up to two months of estimated charges.

The schedules are filed with the Mississippi Public Service Commission and were effective March 19, 2025.

Mississippi Power can raise it later

Rule 504 also lets the company require a deposit from any customer, or require that an original deposit be increased, whenever it judges that necessary for its protection. Nonresidential deposits are payable before service is furnished. No initial deposit is required of a residential customer unless the company judges one necessary.

How cash deposits are handled

Under Rule 505 a deposit is not applied to current monthly bills while service continues. When service is discontinued, the company may apply the deposit and any interest due to the customer's account. Rule 506 provides interest at the stated lawful rate, but none is owed on a deposit from a customer of less than twelve consecutive months. Rule 507 allows a residential applicant to offer a written guaranty from another active customer instead of a deposit.

Where the bond fits

The rate schedules describe the deposit as cash. A utility deposit bond is a surety's written guarantee to Mississippi Power Company that the customer will pay its electric bills. If the customer does not pay and the utility makes a valid claim, the surety pays and then collects from the customer. Before the bond is issued, confirm with Mississippi Power that it will take the bond in place of the cash deposit, the amount it requires for your account, and whether it has its own bond form.

Eligibility and Requirements for a Mississippi Utility Deposit Bond:

• Mississippi Power Company named as obligee.
• Bond amount equal to the deposit Mississippi Power sets for the account.
• General service accounts under GS-LVT-15I and GS-HV-17I: twice the estimated maximum monthly bill.
• Service address and account details matching the utility's records.
• Owner credit review by the surety.

Mississippi Utility Deposit Bond FAQs:

Official and Additional Resources for the Mississippi Utility Deposit Bond: